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IP2Innovate welcomes the call by CDU/CSU to introduce a proportionality test in the German Patent Act to better protect innovators against patent trolls

In a recent press release the German Conservatives (CDU/CSU) Elisabeth Winkelmeier-Becker and Ingmar Jung express concerns over abusive litigation practices by patent trolls, which distort the market and undermine Germany’s attractiveness as a business location. They note that in light of the high complexity of modern products, companies can no longer completely rule out the possibility of patent infringements. In this context, an unlimited right to injunctive relief create unwarranted leverage for patent trolls who buy up patents only to assert them against companies and extract disproportionately high settlements. Solutions proposed by CDU/CSU are the introduction of a proportionality test in the German Patent Act as well as a synchronisation of infringement and nullity proceedings.

IP2Innovate has long advocated in favour of bringing more balance to the German patent system so that it supports innovation and economic growth. Statistical evidence as well as the experience of IP2Innovate members show that patent trolls are increasingly targeting Germany, depriving companies of significant financial resources that are no longer available for research, development and innovation. We welcome the political support for the reform of the German Patent Act to introduce a proportionality test on injunctive relief. Such a reform is necessary to support the development and marketing of complex, multi-functional high-tech products in Germany and across Europe’s single market.

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On 28 January, IP2Innovate submitted its key recommendations for the upcoming EU Single Market Strategy 2025, highlighting the need to modernize patent enforcement in Europe. In the submission, IP2Innovate stresses that consistent application of proportionality requirement to patent enforcement is essential for the functioning of the Single Market. Modernization of the EU IPR Enforcement Directive through targeted amendments is needed to fully exploit the potential of the Single Market to boost Europe’s productivity. IP2Innovate believes that, after 20 years, now is the time to modernize the IPRED through targeted amendments to ensure that courts in the EU Member States and the newly established Unified Patent Court consistently and effectively consider the proportionality of remedies in their handling of patent litigation cases. Such targeted amendments would ensure the consistent and effective application of proportionality across all EU Member States, creating a more predictable legal environment that supports the free movement of goods and services within the Single Market. By fostering legal certainty and reducing market inefficiencies, these changes will unlock the full potential of the Single Market to drive Europe’s productivity and competitiveness.
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